First Federal Reserve Bank Opens

On this day in 1914 the Federal Reserve's first bank is officially opened. The Federal Reserve was created as a unifying body of the nation's banks. Before the Fed the nation's banks were all independent. After the Fed was established it provided the nation's banks with universal interest rates and other tools to keep banking crises from emerging. Although the Fed was intended to be a passive system in recent years it has taken a more active role in the nation's monetary policy.